How Can a Captive Company Enforce Their Contract?

[vistavette]

Other system has been used in your case. You can have your wife or your husband get appointed as an IA. And you still have your great captive gig if you like.

The stuff you do not write give it to her/him and see how that goes..then the DOI is non issue with that.

most captives will fire you if your spouse is appointed and you're moving business.... they always find out. Often when people do this they try to open in the same office too; which is really stupid.

 

[rousemark]

Most ind companies will not appoint you if you're appointed with a captive so its basically a non-issue. Everyone in our area that has tried to place a lot of business outside of the captive gets caught eventually. I know one person who ignored a cease and desist and they took the agency and didn't pay him a dime. Either be captive or go independent - there's really no reason to play the line.

Don't know what independent companies you are speaking about when you say "most". Independent life and health companies don't give a hoot about your being a captive agent. They will give a contract in a heart beat.

 

[nfsmarketing]

You're incorrect about that. Every DOI in every state I've ever looked at lists ALL the company appointments for every agent. The insurance company home office can routinely look to see who their agents are appointed with and so can your captive agency managers.

Illinois doesn't list the company appointments.

 

[AllenChicago]

All it takes is one customer called the 1 800 number and saying they have a policy through another company from you. Termination or even a sue if they say you used their name or logo to attract business for another company...

This is similar to what got me canned from Prudential after 9 years as a captive agent. The customer called in to our office. I wasn't there, so he spoke with the manager about the Jackson National Life annuity that agent Allen had sold him.

The District Manager called me to the office to find out why I was selling JNL. I told him that their interest rates and commissions were higher. Being fired was somewhat traumatic at the time, but now (14 years later) it turned out to be the best career move I could have made. Nothing beats being able to get what's best for your client. You have better peace-of-mind that way.
-ac

 

[Newby]

You're incorrect about that. Every DOI in every state I've ever looked at lists ALL the company appointments for every agent. The insurance company home office can routinely look to see who their agents are appointed with and so can your captive agency managers.

I'd love to know how you would look this up on the Indiana or Illinois DOI websites.

 

[Larry Tew]

I'd love to know how you would look this up on the Indiana or Illinois DOI websites.

Apparently there are more states than I thought that do not publish appointments. I wonder however if appointment information is available through another method (calling the department for example).

 

[vistavette]

Don't know what independent companies you are speaking about when you say "most". Independent life and health companies don't give a hoot about your being a captive agent. They will give a contract in a heart beat.

P/C is what I was thinking - captives dont sell health and dont care - they care about life but most captive agents dont - they're looking for P/C outlets.

 

[xrac]

I think the best answer is that if being captive doesn't work have the balls and integrity to leave and build your own agency. You can't have your cake and eat it too. Most captives aim for a certain market. If you want to reac other markets you need to rethink what you are doing.

 

[rousemark]

P/C is what I was thinking - captives dont sell health and dont care - they care about life but most captive agents dont - they're looking for P/C outlets.

There are captive life and health agencies and companies that don't sell P&C and since I spend a few years with one, when you just say "captive" that is what comes to my mind..

 

[vistavette]

There are captive life and health agencies and companies that don't sell P&C and since I spend a few years with one, when you just say "captive" that is what comes to my mind..

Its the reverse to me; I wasn't thinking L&H!